CULIACAN, Mexico, July 27 /PRNewswire-FirstCall/ -- Desarrolladora Homex, S.A.B. de C.V. ("Homex" or "the Company") today announced financial results for the second quarter ended June 30, 2009(1).
MFRS B-10 Effects of Inflation
Effective January 1, 2008, and according to MFRS B-10 "Effects of Inflation," the Company did not recognize the effects of inflation in the financial information during the year ended December 31, 2008 and will not recognize them during 2009. Accordingly, second quarter 2008 and second quarter 2009 figures are presented without the effects of inflation.
Highlights
-- In the second quarter of 2009, total homes sold increased 11.2 percent when compared to the second quarter of 2008, mainly driven by solid 12.1 percent volume growth in the affordable entry-level segment, as a result of Homex' strong focus, expertise and leadership in the segment and continued financing availability through INFONAVIT and FOVISSSTE. Mortgage availability for middle-income homes through FOVISSSTE and INFONAVIT co-financing products resulted in 1.4 percent growth in middle-income homes sold for the quarter.
-- Total revenue in the 2009 second quarter increased 7.9 percent to Ps.4.7 billion (US$359 million) from Ps.4.4 billion (US$332 million) for the same period in 2008.
-- Gross margin for the second quarter of 2009 was 30.7 percent compared to 32.4 percent during the second quarter of 2008. Gross margin adjusted for the application of MFRS D-6 "Capitalization of Comprehensive Financing Cost" remained stable at 32.5 percent compared to 32.7 percent during the same period of last year.
-- Selling, General and Administrative Expenses (SG&A), as a percentage of revenues, increased 94 bps to 12.2 percent during the second quarter of 2009 compared to 11.2 percent during the same period last year, mainly driven by increased sales and marketing expenses designed to grow the Company's market share. SG&A as a percentage of revenue when compared to the first quarter of 2009 decreased 49 bps as a result of our ongoing expense reduction programs including lower marketing expenses as a result of tailored marketing campaigns and lower payroll expenses as part of the Company's administrative personnel reduction program.
-- Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) during the recent quarter was Ps.1,095 million (US$83 million), a 4.1 percent increase from the Ps.1,052 million (US$80 million) reported in the second quarter of 2008.
-- Adjusted EBITDA margin decreased 85 basis points to 23.2 percent in the second quarter of 2009 from 24.0 percent in the second quarter of 2008, mainly driven by higher SG&A expenses resulting from increased sales and marketing efforts.
-- For the second quarter of 2009, net income was Ps.666 million (US$50 million) compared to Ps.722 million (US$55 million) for the second quarter of 2008. Net income margin for the second quarter of 2009 was 14.1 percent.
-- Quarterly free cash flow generation resulted in a positive balance of Ps. 230 million, as a result of increased sales and improvements to the Company's collection process as well as lower capital expenditures, in line with the Company's conservative strategy to preserve cash.
"We believe Homex' second quarter results demonstrate our ability to successfully navigate a challenging economic environment and deliver solid financial performance. As a company, we have remained focused on leveraging our diversified footprint and concentrating on the growing affordable entry and low-middle income segments where we see the greatest opportunities. We are also committed to exceeding the expectations and needs of our customers by constantly training our sales team and improving the quality of our product offering through our customization program, integration of sustainable and environmentally friendly attributes in our communities and the incremental use of our innovative aluminum mould technology," said Gerardo de Nicolas, Chief Executive Officer of Homex. "We remain confident about Homex' growth expectations for the remainder of the year."
FINANCIAL AND OPERATING HIGHLIGHTS 2Q'09 U.S Dollars (In Thousands) (Convenience Thousands of pesos Translation) 2Q'09 Volume (Homes) 14,928 14,928 Revenues $358,605 $4,726,840 Gross profit $110,109 $1,451,369 Operating income $66,480 $876,285 Interest expense, net $1,292 $17,028 Net income $50,561 $666,450 Adjusted EBITDA (a) $83,054 $1,094,745 Gross margin 30.70% 30.70% Operating margin 18.50% 18.50% Adjusted EBITDA margin 23.20% 23.20% Earnings per share 1.99 1.99 Earnings per ADR presented in US (b) 0.91 0.91 Weighted avge. shares outstanding (MM) 334.9 334.9 Accounts receivable (as a % of sales) Accounts receivable (days) period-end Inventory turnover (days) period-end Inventory (w/o land) turnover (days) period-end FINANCIAL AND OPERATING HIGHLIGHTS Thousands of pesos 2Q'08 % Chg. 2009 Volume (Homes) 13,426 11.2% 26,819 Revenues $4,381,085 7.9% $8,496,052 Gross profit $1,418,840 2.3% $2,406,018 Operating income $926,872 -5.5% $1,353,176 Interest expense, net $32,632 -47.8% ($4,448) Net income $722,296 -7.7% $946,372 Adjusted EBITDA (a) $1,051,984 4.1% $1,953,909 Gross margin 32.40% 28.30% Operating margin 21.20% 15.90% Adjusted EBITDA margin 24.00% 23.00% Earnings per share 2.16 2.83 Earnings per ADR presented in US (b) 0.98 1.29 Weighted avge. shares outstanding (MM) 334.9 334.9 Accounts receivable (as a % of sales) 62.20% Accounts receivable (days) period-end 224 Inventory turnover (days) period-end 376 Inventory (w/o land) turnover (days) period-end 68
(a) Adjusted EBITDA is not a financial measure computed under Mexican Financial Reporting Standards (MFRS). Adjusted EBITDA as derived from our MFRS financial information means MFRS net income, excluding (i) depreciation and amortization; (ii) net comprehensive financing costs ("CFC") (comprised of net interest expense (income), foreign exchange gain or loss, valuation effects of derivative instruments and monetary position gain or loss) including CFC capitalized to land balances that is subsequently charged to cost of sales; and (iii) income tax expense and employee statutory profit-sharing expense. See "Adjusted EBITDA" for reconciliation of net income to Adjusted EBITDA for the second quarter of 2009 and 2008.
(b) US$ values estimated using an exchange rate of Ps. 13.1812 per US$1.00. Common share/ADR ratio: 6:1
Detailed Financial Reports
The Company produces a detailed earnings report that provides information regarding Operating and Financial results. This detailed information is considered part of this earnings announcement and is available in full with this earnings release via the Company's website at http://www.homex.com.mx/ri/index.htm through email distribution or the Company's filings with the SEC and the CNBV.
Second Quarter 2009 Results Conference Call Notice DATE: Tuesday, July 28, 2009 TIME: 8:00 AM Central Time (Mexico City) 9:00 AM Eastern Time (New York) HOSTS: Gerardo de Nicolas, Chief Executive Officer Carlos Moctezuma, Vice President of Finance and Planning and Chief Financial Officer Vania Fueyo, Investor Relations Officer DIAL-IN: International: 706-679-8631 U.S.: 877-767-8647 Passcode: 12148594 Please call 10 minutes prior to start time and request the Homex call REPLAY: 706-645-9291, available one hour after the call ends, the pass code to access the replay of the call is 12148594. Or via webcast at http://www.homex.com.mx/ri/index.htm
A copy of the earnings release will be e-mailed to you after market close on July 27, 2009. It will also be available on the Company IR website at http://www.homex.com.mx/ri/index.htm
Please contact Ms. Vania Fueyo at (011-52-667) 758 5838 or via email at: investor.relations@homex.com.mx with any questions.
Investor Contacts investor.relations@homex.com.mx Vania Fueyo Head of Investor Relations +5266-7758-5838 vfueyo@homex.com.mx
1) Unless otherwise noted, all monetary figures are presented in thousands of Mexican pesos and in accordance with Mexican Financial Reporting Standards (MFRS). Second Quarter 2009 and 2008 figures are presented without recognizing the effects of inflation per the application of MFRS B-10 "Effects of inflation." The symbols "Ps." and "$" refer to Mexican pesos and "US$" refers to U.S. dollars. U.S. dollar figures are presented only for the convenience of the reader and are estimated using an exchange rate of Ps. 13.1812 per US$1.00. Second quarter 2009 financial information is unaudited and is subject to adjustments.
Figures comparison expressed in basis points are provided for the convenience of the reader. Basis points figures may not match due to rounding.
Desarrolladora Homex, S.A.B. de C.V.
CONTACT: Vania Fueyo, Head of Investor Relations, +011-5266-7758-5838,
vfueyo@homex.com.mx, or investor.relations@homex.com.mx
Web site: http://www.homex.com.mx/
